Chapter 6 pf

C

73. The average used car costs about _______ less than the average new car. A. $0 B. $1,000 C. $10,000 D. $25,000 E. $50,000

D

52. Most products come with some guarantee of quality. This type of warranty covers the product's intended use or other basic understandings that are not in writing. A. "As-is" warranty B. Express warranty C. Full warranty D. Implied warranty E. Limited warranty

C

100.Paul bought some bad gasoline that damaged the gas tank of his vehicle. A. He should sue the gas station where he bought his gas. B. He never should have expected any problems with buying any product, especially gas for his car. C. He should provide the gas station with documentation of his purchase and all repair costs. D. He should assume that the gas station should be able to track his purchase based on video cameras. E. All of these are correct.

D

101.Think about consumer complaints. Which of the following is correct? A. The first step is to contact the company headquarters. B. If you don't get satisfaction from the local store, you should take legal action as the next step. C. An arbitrator will provide a nonbinding process to settle your differences. D . If you don't get satisfaction from working with the company headquarters, you may get assistance from a mediator in order to avoid legal action. E. None of these is correct.

D

102.A process used to settle grievances in a nonbinding process is called a(n) A. Arbitration. B. County health department. C. Lawsuit. D. Mediation. E. Two of these are correct.

B

103.Tamra went to a restaurant and had an unpleasant experience that sent her to the hospital. The problems at the restaurant should be handled by A. Arbitration. B. The county health department. C. A lawsuit. D. Mediation. E. The doctor who treated her.

C

104.Which of the following is not a legal option for upper-income consumers? A. Class action lawsuits B. A lawyer C. A legal aid society D. Prepaid legal services E. Small claims court

A

105.Sally has a major problem with a product and thinks that many others have had the same problem. Which of the following is the best way to resolve the problem? A. Class action lawsuit B. A lawyer C. A legal aid society D. Prepaid legal service E. Small claims court

B

106.Steven needs to write a will. His best resource is (a) A. Class action lawsuit. B. Lawyer. C. Legal aid society. D. Prepaid legal service. E. Small claims court.

C

107.Adolph has a low income and needs legal assistance. He should make use of (a) A. Class action lawsuit. B. Lawyer. C. Legal aid society. D. Prepaid legal services. E. Small claims court.

D

108.If you want to pay a set fee to receive unlimited or reduced-fee assistance, you should use (a) A. Class action lawsuit. B. Lawyer. C. Legal aid society. D. Prepaid legal services. E. Small claims court.

E

109.If you have a problem whose remedy will be $1,500-$3,000, the appropriate tool to use would be (a) A. Class-action lawsuit. B. Lawyer. C. Legal aid society. D. Prepaid legal services. E. Small claims court.

A

110.The unit price of a two-pound (32-ounce) box of brown sugar that costs $3.20 is A. $0.10 per ounce. B. $0.10 per pound. C. $1.60 per ounce. D. $3.20 per pound. E. $6.40 per pound.

A

111.The unit price of a 64-ounce carton of orange juice that costs $3.20 is A. $0.05 per ounce. B. $0.10 per ounce. C. $0.20 per ounce. D. $1.00 per ounce. E. $3.20 per ounce.

C

112.Using the following information, what is the cost to buy a car? (a graph is list here. on pdf. file) A. $3,000. B. $21,200. C. $24,560. D. $25,200. E. $28,200.

B

113.Using the following information, what is the cost to lease a car? (a graph is list here. on pdf. file) A. $18,000 B. $18,530 C. $18,560 D. $18,830 E. $19,030

A

38. When Jane researched the brands and prices of refrigerators, she was A. Comparison shopping. B. Compulsive shopping. C. Impulse shopping. D. Trade-off shopping. E. Warranty shopping.

C

39. While Paul was shopping for a new chainsaw, he found a great deal on a new drill and bought it. This is an example of A. Comparison shopping. B. Compulsive shopping. C. Impulse shopping. D. Trade-off shopping. E. Warranty shopping

B

40. Jacob drives by a Big Box home improvement center on his way home from work. He usually stops and buys something because it makes him feel good. Jacob is A. Comparison shopping. B. Compulsive shopping. C. Impulse shopping. D. Trade-off shopping. E. Warranty shopping.

C

41. Which of the following is NOT a strategy for wise buying? A. Buying winter clothes on sale in mid- or late winter B. Researching the prices and choices for purchases C. Buying items on impulse D. Carefully considering buying alternatives E. Using unit pricing to compare products

C

42. These products are highly advertised and available at many stores. A. Private-label brands B. Store brands C. National brands D. Regional brands E. Generic items

D

43. These products are sold by one chain of stores and are low-cost alternatives to famous-name products. A. Private-label brands. B. Store brands. C. National brands. D. Private-label or store brands. E. All of these are correct.

D

44. A standard measurement used to compare packages of different sizes is A. Coupons. B. Open dating. C. Rebates. D. Unit pricing. E. Warranty.

A

45. This type of promotion provides an immediate savings for consumers. A. Coupons B. Open dating C. Rebates D. Unit pricing E. Warranty

B

46. This shopping label is used primarily on perishable products. A. Coupons B. Open dating C. Rebates D. Unit pricing E. Warranty

C

47. Partial refunds of the price of a product are called A. Coupons B. Open dating C. Rebates D. Unit pricing E. Warranty

E

48. This is a written guarantee from the manufacturer that specifies the conditions under which the product can be returned, replaced, or repaired. A. Coupons B. Open dating C. Rebates D. Unit pricing E. Warranty

B

49. Most products come with some guarantee of quality. Which of the following is usually in written form, created by the seller or manufacturer, and has two forms? A. "As-is" warranty B. Express warranty C. Full warranty D. Implied warranty E. Limited warranty

C

50. Most products come with some guarantee of quality. This type of warranty states that a defective product can be fixed or replaced during a reasonable amount of time. A. "As-is" warranty B. Express warranty C. Full warranty D. Implied warranty E. Limited warranty

E

51. Most products come with some guarantee of quality. This type of warranty covers only certain aspects of the product, such as parts. A. "As-is" warranty B. Express warranty C. Full warranty D. Implied warranty E. Limited warranty

C

53. Steve bought a laptop that was defective. This laptop will be fixed or replaced by the manufacturer as long as he returns it in a reasonable amount of time. What type of warranty does he have on his laptop? A. "As-is" warranty B. Express warranty C. Full warranty D. Implied warranty E. Limited warranty

D

54. Frank bought some miniblinds. Although he did not receive a written warranty, the blinds should be expected to open and close properly. What kind of warranty does Frank have? A. "As-is" warranty B. Express warranty C. Full warranty D. Implied warranty E. Limited warranty

E

55. Karen bought a mixer. She received a warranty that covers only certain aspects of the product. If the product fails, she may be required to pay part of the costs for shipping or repairs. Which of the following warranties does she have? A. "As-is" warranty B. Express warranty C. Full warranty D. Implied warranty E. Limited warranty

C

56. Mike bought a new car. His new car warranty probably included all of the following except A. Coverage of basic parts against defects. B. Corrosion warranty. C. Extended coverage for air conditioning. D. Possibility to transfer the warranty to other owners of the car (additional charges may apply). E. Power train coverage.

E

57. A service contract A. Is better than an extended warranty. B. Is an agreement to cover repair during the implied warranty period. C. Is included automatically with the purchase of a vehicle. D. Usually does not cover the engine cooling system. E. Covers the repair costs of a product.

C

58. The text identifies several phases in the buying process. The correct order of the phases is A. Evaluating alternatives, preshopping activities, selection and purchase, postpurchase activities. B. Preshopping activities, selection and purchase, evaluating alternatives, postpurchase activities. C. Preshopping activities, evaluating alternatives, selection and purchase, postpurchase activities. D. Postpurchase activities, evaluating alternatives, preshopping activities, selection and purchase. E. Evaluating alternatives, selection and purchase, preshopping activities, postpurchase activities.

C

59. Problem identification is part of the ____ phase of the decision-making process. A. evaluating alternatives B. postpurchase activities C. preshopping activities D. selection and purchase E. More than one of these is correct.

C

60. Information gathering is part of the ____ phase of the decision-making process. A. evaluating alternatives B. postpurchase activities C. preshopping activities D. selection and purchase E. ordering activities

A

61. Comparison of product features is part of the ____ phase of the decision-making process. A. evaluating alternatives B. postpurchase activities C. preshopping activities D. selection and purchase E. ordering activities

A

62. Price analysis is part of the ____ phase of the decision-making process. A. evaluating alternatives B. postpurchase activities C. preshopping activities D. selection and purchase E. ordering activities

D

63. Negotiation activities are part of the ____ phase of the decision-making process. A. evaluating alternatives B. postpurchase activities C. preshopping activities D. selection and purchase E. More than one of these is correct.

D

64. Choosing the payment method is part of the ____ phase of the decision-making process. A. evaluating alternatives B. postpurchase activities C. preshopping activities D. selection and purchase E. More than one of these is correct.

B

65. Properly maintaining and operating the product is part of the ____ phase of the decision-making process. A. evaluating alternatives B. postpurchase activities C. preshopping activities D. selection and purchase E. More than one of these is correct.

B

66. Resolving purchase concerns is part of the ____ phase of the decision-making process. A. evaluating alternatives B. postpurchase activities C. preshopping activities D. selection and purchase E. ordering activities

B

67. Which of the following is the best way to state a problem? A. I need to have a car. B. I need transportation. C. I need a motorcycle. D. I need to have a minivan. E. I need to have an SUV.

E

68. Which of the following sources would be the LEAST helpful when purchasing a vehicle? A. Personal contacts to learn about product performance. B. Media information with purchasing advice. C. Independent testing organizations like Consumers Union. D. Online sources with product information. E. Your cousin who has never purchased a car.

E

69. All of the following are appropriate questions you could ask before making a major purchase except A. Is it possible to delay the purchase or to do without the item? B. Should I pay for the item with cash or buy it on credit? C. Which brands should I consider? D. How do the price, quality, and service compare at different stores? E. All of these are questions that should be asked.

A

70. Comparison shopping will be beneficial for buying all of the following except A. A hot dog at the baseball park. B. Milk and bread that you buy weekly. C. A pet dog. D. Musical instrument accessories that you purchase online. E. An expensive television.

E

71. Comparison shopping will be beneficial for buying A. Inexpensive items. B. One-time purchases of low-cost products. C. Products whose prices are the same at all retailers. D. Products whose quality is the same at all retailers. E. Items that can be researched easily with advertisements.

D

72. Buying a vehicle can be a challenging process. When researching a vehicle, a consumer may want to consider all of the following except A. Mechanical devices to improve performance. B. Convenience options such as air conditioning. C. Aesthetic features like metallic paint. D. All of these may be considered. E. None of the items listed are important when buying a vehicle.

C

74. When purchasing a used vehicle, it is a good idea to A. Take out a loan for the entire cost. B. Accept the dealer at his word about the condition of the vehicle. C. Have a trained and trusted mechanic of your choice check out the vehicle. D. All of these are correct. E. None of these is correct.

D

75. Which of the following is an advantage of a car lease? A. A large down payment is required. B. At the end of the lease, you have no ownership interest in the vehicle. C. The capitalized cost is usually higher than the list price. D. Monthly lease payments are usually lower than monthly financing payments. E. The total cost of a lease may be higher than a purchase.

B

76. Which of the following is a disadvantage of a car lease? A. A large down payment is required. B. At the end of the lease, you have no ownership interest in the vehicle. C. The capitalized cost is usually lower than the list price. D. Monthly lease payments are usually lower than monthly financing payments. E. You can usually obtain a more expensive vehicle than with an outright purchase.

B

77. The amount printed on a label with the suggested retail price that is posted on a vehicle is called the A. Invoice price. B. Sticker price. C. Set price. D. Capitalized cost. E. Residual value.

A

78. The dealer's cost is also known as the A. Invoice price. B. Sticker price. C. Set price. D. Capitalized cost. E. Residual value.

C

79. A no-haggling dealer will use a(n) A. Invoice price. B. Sticker price. C. Set price. D. Capitalized cost. E. Residual value.

D

80. The price of a leased vehicle is known as the A. Invoice price. B. Sticker price. C. Set price. D. Capitalized cost. E. Residual value.

E

81. The expected value of a vehicle at the end of a lease is called the A. Invoice price. B. Sticker price. C. Set price. D. Capitalized cost. E. Residual value.

D

82. Izzy is thinking about leasing a sports car. She will make monthly payments based on a money factor and the A. Invoice price. B. Sticker price. C. Set price. D. Capitalized cost. E. Residual value.

A

83. Helga plans to purchase a pickup truck. She should begin her price negotiation at the A. Invoice price. B. Money factor. C. Set price. D. Capitalized cost. E. Residual value.

A

84. A vehicle lease has several costs. Which of the following is the price of the vehicle? A. Capitalized cost. B. Money factor. C. Payment schedule. D. Residual value. E. All of these.

B

85. A vehicle lease has several costs. Which of the following is the interest rate used to calculate the monthly cost? A. Capitalized cost. B. Money factor. C. Payment schedule. D. Residual value. E. All of these.

C

86. A vehicle lease has several costs. Which of the following is the amount paid monthly? A. Capitalized cost B. Money factor C. Payment amount D. Residual value E. Trade-in value

D

87. A vehicle lease has several costs. Which of the following is the expected value at the end of the lease? A. Capitalized cost B. Money factor C. Payment amount D. Residual value E. Trade-in value

E

88. Which of the following is a cost associated with a vehicle lease? A. Capitalized cost. B. Money factor. C. Payment amount. D. Residual value. E. All of these.

D

89. George has never bought a car before. Which of the following techniques should he use to get the best deal? A. Lowballing B. Highballing C. Leave a deposit to hold the vehicle D. Research the actual dealer cost and begin negotiations from that point E. Tell the dealer the highest monthly payment he can afford

C

90. A potential problem with having a long car loan is A. Low monthly payments. B. Low-interest loan. C. Negative equity. D. Loan preapproval. E. All of these are potential problems.

D

91. Which of the following is correct about the lemon law? A. It applies when a vehicle has been out of service for 60 days. B. It was enacted in 45 of the 50 states. C. It requires a refund for the vehicle after the owner has made repeated attempts to obtain financing. D. It applies to vehicles that have been serviced four times to correct the same problem in the first 12,000 miles. E. It applies to both new and used vehicle purchases.

E

92. A variable operating cost for a vehicle is A. Depreciation. B. Insurance. C. Interest on an auto loan. D. License and registration. E. Maintenance and repairs.

E

93. All of the following are fixed operating costs for a vehicle except A. Depreciation. B. Insurance. C. Interest on an auto loan. D. License and registration. E. Maintenance and repairs.

A

94. A fixed operating cost for a vehicle is A. Depreciation. B. Gasoline and oil. C. Maintenance and repairs. D. Parking. E. Tires.

A

95. All of the following are variable operating costs for a vehicle except A. Depreciation. B. Gasoline and oil. C. Maintenance and repairs. D. Parking. E. Tires.

A

96. The largest fixed expense associated with a new automobile is A. Depreciation. B. Insurance. C. Interest on an auto loan. D. License and registration. E. Maintenance and repairs.

B

97. Which of the following costs will increase directly with the number of miles driven? A. Depreciation B. Gasoline C. Insurance D. Interest on an auto loan E. License and registration

A

98. Craig wants to get his old car repaired, but he doesn't want to spend much money. He probably will NOT want to go to a A. Car dealer. B. Independent auto repair shop. C. Mass merchandise retailer. D. Service station. E. Specialty shop.

C

99. Most customer complaints result from the all of the following except A. Deceptive pricing. B. Defective products. C. Long product lives. D. Low-quality products. E. Unexpected costs.